Apple will reportedly offer to license a new, ultra-compact SIM card technology to rival mobile devices makers if they agree back the format as the new industry standard for subscriber identification modules (SIM), a move which could pave the way for more compact and efficiently-designed iOS devices.

The pledge, said to have been outlined earlier this month in a letter to the European Telecommunications Standards Institute (ETSI) penned by a senior member of Apple's legal council, comes just days before the iPhone maker is expected to square off against opponents of the design at the organization's Smart Card Platform Plenary in southern France.

Sized roughly a third smaller than existing MicroSIM cards found inside current iPads and iPhones, the proposed nano-SIM design — which is also noticeably thinner than that of MicroSIM — has already garnered the support of most European wireless carriers as part of their own proposals to the ETSI.

However, rival mobile device makers Nokia, RIM and Motorola have each voiced concerns in opposing standardization of nano-SIM — mainly out of fears Apple could eventually claim ownership of the patents behind the format, placing the company in a position of powered where it could command royalties from the broader industry.

The March 19th letter to the ETSI stands to invalidate these concerns, according to independent intellectual property analyst Florian Mueller, through "an unequivocal commitment to grant royalty-free licenses to any Apple patents essential to nano-SIM, provided that Apple's proposal is adopted as a standard and that all other patent holders accept the same terms in accordance with the principle of reciprocity."

"This shows that Apple is serious about establishing the nano-SIM standard rather than seeking to cash in on it," he said. "Apple is a company that values its intellectual property and rarely gives it away for free. But as far as the evolution of SIM cards is concerned, Apple is clearly being generous and absolutely pro-competitive."

Apple's proposed nano-SIM would be even smaller than existing mini-SIM (top) and micro-SIM (bottom) designs.

In 2010, Apple was said to be working on an embedded SIM design that would allow users to select a carrier and service plan directly from their iPhone. But those plans allegedly upset the wireless operators, who felt they could be marginalized by such a move. As such, the Cupertino-based company compromised and began talking with carriers about designing a smaller SIM card that eventually emerged as the existing MicroSIM.

Apple's continued push towards further miniaturization of SIM cards aims to reduce the space required to house the identification cards inside its future mobile devices, paving the way for devices that are either more compact or free up additional space for other components, such as larger batteries.

"an unequivocal commitment to grant royalty-free licenses to any Apple patents essential to nano-SIM, provided that Apple's proposal is adopted as a standard and that all other patent holders accept the same terms in accordance with the principle of reciprocity."

What does the bolded language mean? What will the "other patent holders" need to do?

In 2010, Apple was said to be working on an embedded SIM design that would allow users to select a carrier and service plan directly from their iPhone. But those plans allegedly upset the wireless operators, who felt they could be marginalized by such a move. As such, the Cupertino-based company compromised and began talking with carriers about designing a smaller SIM card that eventually emerged as the existing MicroSIM.

The embedded SIM design is the way the industry should be going. There's no reason for a SIM and eliminating it would make the device less expensive and more robust.

It would not be hard to set up a mechanism where users could manually enter the numbers.

"an unequivocal commitment to grant royalty-free licenses to any Apple patents essential to nano-SIM, provided that Apple's proposal is adopted as a standard and that all other patent holders accept the same terms in accordance with the principle of reciprocity."

What does the bolded language mean? What will the "other patent holders" need to do?

What does the bolded language mean? What will the "other patent holders" need to do?

Basically, it means that everyone is free to use their patents in the standard all they want so long as they contribute any required patents to the same licensing.

So, for example say the nano-SIM is ratified as a standard. Anyone using the standard must use 20 patents. 10 of those are belonging to Apple, 10 are belonging to Motorola. Anyone and everyone is allowed to use Apple's patents freely, except Motorola. Motorola can only use Apple's patents freely so long as everyone else is able to use Motorola's relevant patents freely as well.

What does the bolded language mean? What will the "other patent holders" need to do?

It means what it says it means.

Companies that try to withhold standards-essential FRAND patents (in violation of prior licensing agreements and EU anti-trust law) wouldn't be licensed to use this. Yes, that would include your buddies at Motorola and Samsung. Based on Motorola's recent legal shenanigans, I think all FRAND patent agreements in the future will have similar language.

Companies that try to withhold standards-essential FRAND patents (in violation of prior licensing agreements and EU anti-trust law) wouldn't be licensed to use this. Yes, that would include your buddies at Motorola and Samsung. Based on Motorola's recent legal shenanigans, I think all FRAND patent agreements in the future will have similar language.

What's good for the goose is good for the gander.

I wonder what FRAND encumbered SIM card patents currently exist? I wonder how much companies are currently asking and getting for royalties?

Is Apple offering something that nobody wants, in exchange for getting currently valuable patents for free?

Your words are self-contradictory. The only patents they'd be getting for free are those involved with the SIM standard - ones you just questioned the existence of.

I don't know what sort of patents are shared or under what sorts of royalty schemes. If any of them are currently valuable, would Apple get them for free?

That's what I'm wondering: What's in this for Apple? How big a burden is this proposal for the current patent holders?

My guess is that Apple will be getting more than it gives. Otherwise, I don't understand Apple's incentive. If Apple wanted to unilaterally start using a smaller SIM, it would just do so. Why do they want it to become a new standard, and what are they getting in return?

...Based on Motorola's recent legal shenanigans, I think all FRAND patent agreements in the future will have similar language...

The FRAND patent policies of all the major standardization bodies already imposes such expectations on their signatories, and they have done so since long before this most recent spat of smartphone patent lawsuits.

The FRAND patent policies of all the major standardization bodies already imposes such expectations on their signatories, and they have done so since long before this most recent spat of smartphone patent lawsuits.

There is no current expectation that patent holders will contribute their work for free. FRAND encumbered patents are licensed to others for royalties. My guess is that some of the royalties are big profit centers for those who hold valuable patents.

In the SIM card standards, what are the relevant patents that other companies need to license for free if they accept Apple's deal?